By Gavin Gibbon
Total income reached $6.1bn as a result of loan growth and higher income fee
Emirates NBD has revealed a 44 percent increase in net profit to a record AED14.5 billion ($3.9bn) for 2019.
Financial results released through the Dubai Financial Market (DFM) on Monday revealed a 29 percent increase in total income to AED22.4bn ($6.1bn), due to loan growth and higher fee income.
Net interest was up 26 percent due to loan growth, while non-interest income grew 38 percent as a result of higher foreign exchange and credit card related income.
Core operating profit increased by four percent year-on-year, helped by the completion in July of a deal that saw Dubai's biggest lender acquire a 99.85 percent stake in Turkey's DenizBank.
Total assets at the year-end were in excess of AED683bn ($186bn), while the common equity tier 1 ratio settled at 15.3 percent following a successful rights issue in November.
Sheikh Ahmed Bin Saeed Al Maktoum, chairman, Emirates NBD, said: “2019 was a momentous year for Emirates NBD leading to a strong net profit. The underlying performance, coupled with strategic initiatives, helped Emirates NBD generate significant shareholder value. The outstanding success of the rights Issue underlines the confidence of local and international investors in the bank’s business model and promising outlook.”
The acquisition of DenizBank increased the bank’s presence to 13 countries, servicing over 14 million customers in the MENAT region.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD, said the results were also helped by a decision to raise the bank’s foreign ownership limit to 20 percent and signalled its intention to further increase the limit to 40 percent in due course.
“This supports the vision and goals of the country’s leadership to make the UAE the region’s most attractive economy for foreign direct investment,” he said.